PERFORMANCE INFORMATION POLICY VERSION 1 AS APPROVED BY THE BOARD OF DIRECTORS 19 APRIL 2011 PERFORMANCE INFORMATION POLICY

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1 PERFORMANCE INFORMATION POLICY 1

2 Contents 1. FOREWORD Constitution Public Sector Management Reform The Government-wide Monitoring and Evaluation System Framework for Strategic Plans and Annual Performance - 3 Plans 2. SCOPE POLICY STATEMENT General Strategic Plans Annual Performance Plans Annual Budget Operational Plans Monthly Reports Quarterly Performance Reports Annual Reports Performance agreements and Performance reviews End-term reviews TIMEFRAMES AND PROCEDURES Strategic Plan Annual Performance Plan Annual Budget Operational Plans Monthly Reports Quarterly Performance Reports Annual Report Performance agreements and Performance reviews End-term reviews VERSION CONTROL AND APPROVAL

3 PERFORMANCE INFORMATION POLICY 1. FORWARD 1.1 Constitution Section 92 of the Constitution states that "members of Cabinet are accountable collectively and individually to Parliament for the exercise of their powers and the performance of their functions and that they must "provide Parliament with full and regular reports concerning matters under their control". Section 133 provides for the accountability of members of the executive council (MEC s) of a Province to the Provincial Legislature. Similar arrangements are specified for municipalities in the Municipal Structures Act (1998). 1.2 Public Sector Management Reform The implementation of the Public Finance Management Act (PFMA) (1999) has enhanced control over public expenditure and empowered public sector managers. One challenge for the public sector is to use resources in a more efficient way. Policy initiatives and legal requirements have been introduced to achieve this, including the integration of performance concepts from the Estimates of National Expenditure (ENE) and other budget documents, e.g. the Medium Term Expenditure Framework, etc. 1.3 The Government-wide Monitoring and Evaluation System In 2004, the Cabinet initiated plans for a monitoring and evaluation system for Government. The Presidency subsequently developed the Government-wide Monitoring and Evaluation Framework. Although there are various existing systems gathering valuable information within Government, there are also a number of gaps in the information needed for planning the delivery of services and for reviewing and analysing the success of policies. The system has three components: - Programme performance information - Social, economic and demographic statistics - Evaluations. 1.4 Framework for Strategic Plans and Annual Performance Plans National Treasury published The Framework for Strategic Plans and Annual Performance Plans in August This framework is a component of the Government wide Monitoring and Evaluation System as mentioned above. This framework aims at addressing performance information and the reporting thereof. 3

4 2. SCOPE PERFORMANCE INFORMATION POLICY VERSION 1 This policy is part of the IM/IS Policy Framework and is applicable to the MTPA Board, Audit and all MTPA employees. 3. POLICY STATEMENT 3.1 General Performance information is key to effective management, including planning, budgeting, implementation, reporting, monitoring and evaluation Performance information indicates how well the Agency is performing by assessing the attainment of goals, objectives and plans Performance information promotes and facilitates effective accountability Performance information enables management, stakeholders, legislators, members of the public and other interested parties to track progress and to identify scope for improvement and better understanding of the issues involved Plans (Strategic and Annual Performance) and Performance targets shall be linked to budgets to improve operational effectiveness Strategic Plans and Annual Performance Plans shall be developed as per the applicable framework and templates as prescribed by Treasury Quarterly and Annual reports shall be in line with the applicable Strategic Plan, Annual Performance Plan and templates as prescribed by Treasury Planning and reporting timeframes shall be in line with the applicable legislation and Treasury prescripts. 3.2 Strategic Plans The Strategic Plan set out the Agency s policy priorities, programmes and projects for a 5-year period The Strategic Plan shall be developed within the scope of available resources The Executive Management shall in consultation with the Board develop the Strategic Plan The Board shall approve the Strategic Plan The Strategic Plan may be changed during the 5-year period based on significant changes in policy or the service-delivery environment Changes to the Strategic Plan shall be submitted as a revised Strategic Plan. 4

5 3.2.7 The Strategic Plan lays the foundation for the development of the Annual Performance Plans. 3.3 Annual Performance Plans The Annual Performance Plan sets out what the Agency intends doing in the upcoming financial year and during the MTEF period to implement its Strategic Plan The Annual Performance Plan sets out performance indicators and targets for divisions (programmes) and units (sub-programmes) The Annual Performance Plan sets performance targets and indicators per quarter The Annual Performance Plan shall be developed within the scope of available resources In-year changes shall not be affected. Where performance exceeds or misses targets due to budget changes or other reasons, it shall be noted in the quarterly reports and Annual report The Executive Management shall in consultation with the Board develop the Annual Performance Plan The Board shall approve the Annual Performance Plan. 3.4 Annual Budget The annual budget sets out what funds the Agency is allocated to deliver its mandate and other services The budget allocated shall be linked to and be indicated in the Annual Performance Plan In-year reporting is made through monthly and quarterly financial reports, which shall be included in the quarterly reports Year-end reporting is made through annual financial statements, which shall be included in the Annual Report The Executive Management shall in consultation with the Board develop the annual budget The Board shall approve the annual budget. 3.5 Operational Plans Operational plans set out what each unit intends doing on a monthly basis to ensure that quarterly targets/outputs are met. 5

6 3.5.2 Chief Officers shall ensure that each unit develops an operational plan to ensure implementation of the Annual Performance Plan as well as keeping records of such operational plans Operational plans shall be based on the quarterly targets/outputs in the Annual Performance Plan and shall be broken down into monthly targets / outputs shall provide the template for operational plans. 3.6 Monthly Reports Monthly reports provide progress updates on the implementation of the Annual Performance Plan for a division and unit Monthly reports shall be as per the operational plan developed for the unit Monthly reports shall be submitted to the responsible Chief Officer by the applicable Senior Manager / unit manager as per timeframes stipulated in this policy Chief Officers shall monitor the accuracy of information provided in the monthly reports Monthly reports shall be utilised to complete the quarterly reports shall provide the template for monthly reports. 3.7 Quarterly Performance Reports Quarterly reports provide progress updates on the implementation of the Agency s Annual Performance Plan for a specific quarter Quarterly reports shall be submitted to the Agency s stakeholder (relevant Member of the Executive Council, relevant Provincial Government Department and Provincial Department of Finance/Treasury) within 30-days after the end of the quarter Chief Officers shall be responsible for the accuracy and completeness of performance information provided in their divisional quarterly reports Senior Managers / Unit Managers shall be responsible for the accuracy and completeness of performance information provided to the Chief Officer in their unit quarterly reports The Chief Financial Officer shall also be responsible for the accuracy and completeness of financial information in the quarterly reports The Chief HR Officer shall also be responsible for the accuracy and completeness of information regarding the compensation of employees, employment equity and skills development information. 6

7 3.7.7 shall be responsible for the following: a. Providing the applicable template b. Consolidation of the divisional reports c. Neatness and professionalism of reports d. Submission to EMC, Audit and Board for approval e. Submission to relevant stakeholders f. Record keeping of the reports Quarterly reports shall be utilised in the Performance Management process (agreements and reviews) of Executive, Senior and Middle Management Chief Officers shall be responsible for the evidence of performance information provided in the quarterly report. An audit file shall be kept for this purpose. 3.8 Annual Reports The Annual Report provides information on the performance of the Agency for the applicable financial year The Annual Report looks at the Agency s performance relative to the targets set in the Annual Performance Plan Audited annual financial statements shall be included in the Annual Report Chief Officers shall be responsible for the accuracy and completeness of performance information provided in their divisional annual report Senior Managers / Unit Managers shall be responsible for the accuracy and completeness of performance information provided to the Chief Officer in their unit annual report The Chief HR Officer shall also be responsible for the accuracy and completeness of information regarding the compensation of employees, employment equity and skills development information in the annual report shall be responsible for the following: a. Providing the applicable template b. Consolidation of the divisional reports 7

8 c. Neatness and professionalism of reports d. Submission to EMC, Audit and Board for approval e. Submission to relevant stakeholders f. Submission to relevant parties g. Record keeping of the report Corporate Communication shall be responsible for the corporate image (graphics) of the report Chief Officers shall be responsible for the evidence of performance information provided in the annual report. An audit file shall be kept for this purpose. 3.9 Performance Agreements and Performance Reviews Performance agreements specify individual performance targets Performance agreements must be signed by the end of April for the financial year Performance agreements for Executive, Senior and Middle management shall be based on the implementation of the Annual Performance plan and annual budget Performance reviews for Executive, Senior and Middle management shall be based on the quarterly performance information provided End-term reviews The Agency shall produce an end-term review towards the end of the period covered by its Strategic Plan The end-term review shall report on the extent to which the Agency succeeded in achieving each of the strategic outcome oriented goals and objectives set at the beginning of the 5-year period, as well as any other evaluations conducted during the period Chief Officers shall be responsible for the accuracy and completeness of performance information provided in their divisional end-term review report Senior Managers / Unit Managers shall be responsible for the accuracy and completeness of performance information provided to the Chief Officer in their end-term review report. 8

9 TIMEFRAMES AND PROCEDURES 4.1 STRATEGIC PLAN 5-YEAR PLAN Develop template July Draft 5-year plan / Review August EMC plan annually Consult draft 5-year plan / August Board & EMC reviewed plan Approve plan / revised September Board plan Submit approved plan / End of September revised plan to MEC, Department and Treasury approved plan / October revised plan to all Chief Officers & Senior Managers Publish plan on the website October 4.2 ANNUAL PERFORMANCE PLANS (APP) Develop template July Draft APP August EMC Consult draft APP August Board & EMC Approve APP September Board Submit approved APP to End of September MEC, Department and Treasury approved APP to all October Chief Officers & Senior Managers Publish APP on the website Revise APP in line with April EMC & Board confirmed budget (if necessary) Submit revised APP to April MEC, Department and Treasury revised APP to all Chief Officers & Senior Managers October 9

10 Publish revised APP on the website 4.3 ANNUAL BUDGET Develop template July Finance Draft budget in line with August EMC APP Consult draft budget August Board & EMC Approve budget September Board Submit approved budget to MEC, Department and Treasury approved budget to all Chief Officers & Senior Managers Publish budget on the website End of September October October Finance / Corporate Support Services Finance Confirm annual budget March Department Revise APP in line with confirmed budget as under 4.2 (if necessary) April EMC & Board 4.4 OPERATIONAL PLANS Develop template October Circulate template to November Chief Officers Populate operational plan December to Chief Officers & Unit Managers in line with APP January Submit plans to Corporate February Chief Officers Support Services Revise plans in line with April Chief Officers & Unit Managers revised APP (if necessary) Keep audit file for operational plans April Chief Officers 10

11 4.5 MONTHLY REPORTS Develop template March Circulate template to End of March Chief Officer Populate monthly reports Monthly Unit Managers Submit monthly reports Last working day Unit Managers to Chief Officers of each month Verify actual performance 15 th of next month Chief Officers reported Keep audit file for Monthly Chief Officers monthly reports 4.6 QUARTERLY PERFORMANCE REPORTS Develop template in line with APP First month of each quarter, i.e. April, July, Circulate template to Chief Officers Populate actual performance Submit populated report to Chief Corporate Support Officer Submit financial information per division and consolidated summary to Chief Corporate Support Officer Submit compensation information, employment equity statistics and skills development report to Chief Corporate Support Officer Consolidate divisions reports Spell check reports October, January Second month of each quarter, i.e. May, August, November, February June, September, December, March 15 June 15 September 15 December 15 March 30 June 30 September 15 December 31 March 30 June 30 September 15 December 31 March 30 June 30 September 30 December Chief Officers & Unit Managers Chief Officers Chief Financial Officer Chief HR Officer 11

12 Check alignments 31 March Confirm acronyms Identify gaps and/or conflicts with APP outputs and follow-up with Chief Officer Insert page numbers Input content page Compile executive summary Submit to EMC 7 July 7 October 7 January 7 April Evaluate report and 7 July EMC advise on changes for 7 October submission to Audit 7 January 7 April Effect changes as per EMC Within 1 day inputs Submit to Audit Evaluate report and advise on changes and recommend to Board for approval Effect changes as per Audit recommendations Submit to Board for approval Evaluate report and advise on changes (if any) and approve report for submission to MEC, Department and Treasury Effect changes as per Board recommendations (if any) Submit to MEC, Department and Treasury Record delivery in CEO s As per Audit meeting schedule 15 July 15 October 15 January 15 April Within 1 day As per Board meeting schedule 28 July 28 October 28 January 28 April Within 1 day 31 July 31 October 31 January Audit Board 12

13 office delivery book 30 April Create and store a PDF 31 July electronic copy 31 October 31 January PDF copy to the following: o Information Management o Chief Officers o CEO s Office Publish on the website File on audit file 30 April 31 July 31 October 31 January 30 April 4.7 ANNUAL REPORTS (INCLUDING ANNUAL FINANCIAL STATEMENTS) Procure service provider for graphics and printing March / April Corporate Communications Supply Chain Management Develop time frame schedule March Corporate Communications Develop template in line March with APP Circulate template to March Chief Officers Populate actual performance Facilitate the following: o Overview Chairperson Of Board o Overview Chairperson of Audit o CEO Overview Facilitate graphics and pictures Consolidate divisional reports Spell check reports Check alignments Confirm acronyms March / April as per dates provided by CSS March / April April / May End of March Chief Officers & Unit Managers Corporate Communication 13

14 Identify gaps and/or conflicts with APP outputs and follow-up with Chief Officers Insert page numbers Input content page Submit to EMC 1 st week of April Finance (Annual Financial Statement (AFS)) Evaluate report and As per EMC EMC advise on changes (if any) meeting for submission to combined Audit, Legal and Compliance and Finance Effect changes as per EMC Within 1 day inputs Finance (AFS) Submit to combined Audit, Legal and Compliance and Finance Evaluate report and advise on changes (if any) and recommend to Board for approval Effect changes (if any) as per Audit, Legal and Compliance and Finance Submit to Board for approval Evaluate report and advise on changes (if any) and approve report for submission to Auditor- General Effect changes (if any) as per Board inputs Interact with the Auditor- General Submit to Auditor- General 15 April Finance (AFS) 15 April Combined Audit, Legal and Compliance and Finance Within 1 day Within 1 day End of April Within 1 week May Finance (AFS) Finance (AFS) Board Finance (AFS) Audit and EMC 30 May Finance (AFS) Send report to service 30 May 14

15 provider for graphical Corporate Communication report Draft graphical annual 10 June Service provider report Proof read report 12 June Corporate Communication Finance Submit report to EMC 15 June Effect changes Within 1 day Corporate Communication Finance Submit draft report to 30 June combined Audit, Legal and Compliance and Finance Evaluate report and 30 June Combined Audit, Legal and advise on changes (if any) Compliance and Finance for submission to combined Audit, Legal and Compliance and Finance Effect changes as per EMC inputs Submit to combined Audit, Legal and Compliance and Finance Evaluate report and advise on changes (if any) and recommend to Board for approval Effect changes (if any) as per Audit, Legal and Compliance and Finance Submit to Board for approval Evaluate report and advise on changes (if any) and approve report for final print and submission to MEC, Department and Within 1 day Corporate Communication Finance 15 July 15 July Combined Audit, Legal and Compliance and Finance Within 1 day Corporate Communication Finance 30 July 30 July Board 15

16 Treasury Submit for final print 30 July Corporate Communication Final print 20 August Service provider Submit report to MEC, 31 August Department and Treasury Circulate to relevant September to stakeholders December 4.8 PERFORMANCE AGREEMENTS Develop and sign-off 30 April Chief Officers & Unit Managers annual performance agreements linked with APP Perform quarterly reviews 1 month after the Chief Officers & Unit Managers as per actual performance in quarterly reports end of each quarter Submit to HR 1 month after the end of each quarter Chief Officers & Unit Managers 4.9 END-TERMS REVIEWS Perform end-term review Last 3 months of period covered in 5-year strategic plan EMC and Board 16

17 5. VERSION CONTROL AND APPROVAL This policy is submitted and approved as indicated below: DATE DESIGNATION RESULT December 2010 IM/IS Unit Draft policy February 2011 Draft policy 5 April 2011 EMC Supported for submission to Combined Audit, Finance and Legal and Compliance 13 April 2011 Combined Audit, Finance and Legal Supported and Compliance 13 April 2011 Legal and Compliance Recommended for submission to the Board 19 April 2011 Board Approved VERSION DATE AUTHOR DETAILS 0.1 December 2010 Senior Manager: IM/IS Draft policy and procedure 0.2 February 2011 Chief Corporate Support Officer Added information as per Treasury Framework April 2011 EMC Supported with no April 2011 Combined Audit, Finance and Legal and Compliance April 2011 Legal and Compliance 1 19 April 2011 Board Approved changes -Remove IM/IS policy -Add Audit interaction with Auditor General under Annual report procedure Recommended for submission to the Board 17